Cytek Biosciences' Q1 2025: Unpacking Tariff Impacts, Growth Strategies, and Replacement Cycle Opportunities

Impact of tariffs on gross margin, growth strategy and revenue forecasting, impact of tariffs on gross margin, replacement cycle opportunity are the key contradictions discussed in Cytek Biosciences' latest 2025Q1 earnings call.



Revenue Decline and Market Environment:
- Cytek Biosciences reported a 7.6% decrease in first quarter revenue in 2025, from $41.5 million in Q1 2025 to $41.5 million in Q1 2024.
- The decline was primarily due to weakness in instrument sales in the U.S. and EMEA regions, influenced by uncertainties in academic funding, government budget pressures, and cautious capital spending among pharma and biotech customers.

Service Revenue Growth and Recurring Revenue Expansion:
- Cytek's service revenue increased by 24% in Q1 2025 compared to Q1 2024, reaching $13.3 million.
- This growth was driven by the expansion of the instrument installed base and active usage of Cytek tools across various disciplines, with a notable increase in the trailing 12-month recurring revenue to 31% of total revenue.

Geographic Market Performance and APAC Demand:
- The company experienced a 13% decline in total U.S. revenue and a 24% decline in EMEA revenue, while Asia Pacific revenue grew by 40%.
- The stronger performance in APAC and the rest of the world regions was due to increased demand for instruments and the impact of the China stimulus program.

Product and Market Strategy:
- Cytek expanded its instrument installed base by 115 units, with particular growth in its Aurora Cell Sorter and Northern Light instruments.
- The company's strategic investments in new product lines and expansion into new markets, such as cell and gene therapy, are expected to enhance its addressable market and drive recurring revenue growth.